How Does a Smart Thermostat Save Money on Energy Costs?

December 07, 2020

Keeping your Carson City residence cozy can consume a good amount of money. The usual family spends about $172 on monthly energy bills, according to ENERGY STAR®, or around $2,060 annually. At least half of that goes to heating and cooling.

The majority of residences rely on programmable thermostats, but most people don’t take the trouble to program them. The process is bothersome, complicated and only gives you a couple of options for desired temperatures. When your home stays at an unchanging temp throughout the day, it requires utilities and negatively influences your monthly expenses.

Smart thermostats adjust to your schedule and adjust the temperatures to accompany it. But can getting one really help you spend less money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Save on Utility Expenses

Independent studies have found these devices can lead to large savings.

These studies included home utility costs in 41 states before and after putting in a Nest smart thermostat. Nest said the study determined its thermostats can save up to 12% on heating and 15% on cooling, generating an average savings of $131 to $145 annually.

With the typical smart thermostat running between $100–$250, those savings can help it pay for itself. And most local energy companies have rebates for smart thermostats because they’re ENERGY STAR® certified.

How Does a Smart Thermostat Work?

After your smart thermostat is installed, you’ll at first use it just like your previous thermostat. You’ll switch it up and down, so the thermostat can learn about your wants. Then, it will start making a program that helps you conserve more money, whether you’re at your house or out and about. Since it geofences with your smartphone, you won’t have to remember to adjust it when you go or come back.

Pros and Cons of Installing a Smart Thermostat


As we talked about before, smart thermostats give many benefits to your house and utility costs, such as:

  • No need to adjust—Your smart thermostat will adjust to your activities, so you won’t need to spend time setting programs or remember to turn it up or down.
  • Knows when you arrive and leave—Since a lot of smart thermostats geofence with your phone, your house will go into an energy-efficient setting when you take off and be comfy when you get back.
  • Remote temperature management—You’ll be able to keep an eye on your house’s temp from just about anyplace, thanks to an app on your phone.
  • Monitor heating and cooling use—The majority of smart thermostats offer in-depth data through their app, including how long you required heating and cooling on a specific day.
  • Reminders—Select smart thermostats will let you know about crucial maintenance tasks, such as when it’s time to get a new air filter.
  • Added savings—The majority of local energy companies offer rebates for smart thermostats, so contact with yours for more information.


However, there’s several points you should consider when thinking about installing a smart thermostat in your home:

  • Compatibility—Based on the type and age of your heating and cooling system, a smart thermostat might not function with it. If you’re not sure, it’s best to ask an HVAC pro like Anderson Heating & A/C. We also suggest having it professionally installed. This ensures that you have the right number of wires and that it’s hooked up properly. Some systems don’t have a common wire, which creates compatibility issues with a smart thermostat. This wire energizes your thermostat, so if your residence doesn’t have a C-wire, we can add one.
  • Housing situation—If you own your house and are planning to be there for years, it’s a wise investment to have a smart thermostat. If you’re planning to move in the next year or rent, we suggest delaying unless you plan to take the thermostat with you. If you rent, you’ll often need to secure your landlord’s permission first in advance of installing a new thermostat.
  • Cost—Smart thermostats are more expensive than programmable thermostats, and we suggest having yours professionally installed. However, the energy savings over the years can help pay for itself.
  • Lifestyle—Does a family member work from home, or is someone frequently at the house? If so, you might not see as many savings, but you’ll enjoy the convenience of not needing to program or adjust a thermostat.

Trust Anderson Heating & A/C for Your Smart Thermostat Needs

At Anderson Heating & A/C, our top purpose is to keep your residence comfy while helping you conserve more utility bills. If you’re wanting to install a smart thermostat, our specialists can help, from choosing the right model to expert installation. Call us at 775-230-7628 today to learn more.